John's Florida Real Estate Blog

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Average Mortgage Interest Rates Closing in on a LOW 4%! Record-Breaking Low Rates!

Down Arrow - JTE Today, 9/15/2011, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 4.09%, down from 4.12% last week. The average interest rate for 15 year fixed-rate mortgages was 3.30%, down from 3.33% last week. A year ago the 30 year rate was 4.37%. Will rates go below 4% for the first time ever on a 30 year fixed-rate mortgage???? Can you imagine the savings each month and over the life of the loan? Incredible!

Investors continue to worry about the economies in Europe and this pushed the treasury bond yields "south", and mortgage interest rates went along for the ride. Freddie Mac reports that the average interest rate that people are paying for existing mortgages (those they have had for several years and have not refinanced) sits at 5.28%. Not a bad rate. But by refinancing (if you are able to) to the new lower rates available today, you could save about $1,715/year in interest payments if you had a $200,000 mortgage loan. If your current rate is higher than 5.28% then the savings would be even greater.

Of course, not everyone can refinance, especially if they home is worth less than what they owe. That is a shame and many people find themselves (me included) in that group. But if you can refinance or are just now buying a home, these historically low interest rates are a great opportunity for you.

Freddie Mac's spokesperson also stated, "Apart from just fixed-rate mortgages, various other interest rates are at or near all-time historical lows as well. Both the 10-year constant-maturity Treasury bond and AAA-rated seasoned corporate bond yields were at 50-year lows over the week ending September 9th. In addition, the 1-year constant-maturity bill, a popular index for ARMs, hit its nadir over the week of September 2nd since data began in 1952."

Do keep in mind that we are a very large country. So figures that come out for the entire nation, may have little or no relevance for your particular area. In the end, it is best if you speak with a local REALTOR or financing expert to see what the situation is for your part of the United States. Florida is not Michigan, nor is Maine the same as California. Market conditions can be very different from place-to-place. Also, your own credit history, the property you want to buy, etc. will effect your specific loan options and interest rates. Your mortgage broker or bank loan officer can give you more specific information.

If you want to learn more about Freddie Mac or see the details of their survey, go to: www.freddiemac.com and click on the link for "Current Weekly Survey". They break down the survey by specific regions in the United States so you can see how your state compares to other parts of the country. They also explain the mission of Freddie Mac and offer a lot of useful information for consumers.

If you would like to speak with a lender you can find some at my website: www.jelwell.century21bnr.com . You can also speak with your own bank, credit union, or mortgage broker to see what your particular interest rate would be, should you decide to finance a home purchase.

I would also be happy to assist you in any way that I can. Just call JOHN ELWELL - REALTOR at CENTURY 21 Bill Nye Realty, Inc. : 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com You are also welcome at my webpage: www.jelwell.century21bnr.com   Licensed in Florida.

John Elwell - REALTOR

CENTURY 21

Bill Nye Realty, Inc.

813-783-4444

Licensed in Florida

 

Comment balloon 0 commentsJohn Elwell • September 15 2011 05:42PM

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